(A) Agreements. All bonds and insurance required under this section shall be secured from companies authorized to do business in the State of Kentucky and shall be deposited and remain at all times with the City Clerk/Treasurer.
(1) Construction agreement.
(a) To assure construction and installation of improvements and control of erosion and sedimentation (when necessary) required by these regulations, the subdivider shall execute a construction agreement with the City Council in form and substance approved by the city's legal counsel. This agreement shall provide that all such improvements (as specified in this agreement) shall be constructed and installed at the subdivider's expense in compliance with the standards and specifications for each of the various types of improvements; (including, when applicable, measures needed to control erosion and sedimentation); such improvements shall be available to and for the benefit of the land within such subdivision and surrounding land which is in the same service or drainage area; that such improvements (as specified in this agreement) will be completed and installed within 24 months of the date of conditional or final approval of the final plat or within a mutually agreed upon extension (but never to exceed 12 consecutive calendar months).
(b) The construction agreement shall further provide that, in the case where approval of the final plat has been given before construction of improvements and a performance guarantee has been provided; and if the improvements are not completed within the specified time, the city, upon proper notice, may complete the improvements and recover full costs and expenses thereof from the subdivider and may appropriate such portion of money or bonds posted for the faithful performance of said works.
(2) Commencement of improvements. No construction of any improvements shall be commenced prior to the approval of the construction agreement by the City Council.
(B) Guarantees. The subdivider may execute and file guarantees with the city in lieu of actual installation or completion of the required improvements when requesting approval of the final plat. Such guarantees may be in the form of a performance bond filed with the City Council and in such an amount as the Planning Commission, or its duly authorized representative, shall estimate and determine to be reasonably necessary to complete all of the improvements required to be done by the subdivider (including measures to control erosion and sedimentation, when applicable) and also the Planning Commission, or its duly authorized representative's fee, for a field inspection. The bond may be in the form of a surety bond or a cash bond or negotiable United States Treasury Certificates of the kind approved by law for securing deposits of public money. The bond shall be executed by the subdivider as principal, and if a surety bond, shall be executed by a corporation authorized to act as a surety under the laws of the State of Kentucky, as surety. The bond shall be a guarantee of faithful performance of any and all work and the construction and installation of all improvements required to be done by the subdivider together with all engineering and inspection costs and fees incurred by the city. The bond shall contain the further condition that should the subdivider fail to complete all work and improvements required to be done by him within 24 consecutive calendar months of the date of approval of the final plat, or within a mutually agreed upon extension, but never to exceed 12 consecutive calendar months, that the city may, at its option, cause all required work to be done and improvements constructed. The parties executing the bond shall be firmly bound for the payment of all necessary costs therefor. Whenever the subdivider elects to deposit cash or approved negotiable United States Treasury Certificates, the city shall be authorized, in the event of any default on the part of the subdivider or the performance of any work or construction of any improvements for which the cash or negotiable bonds has been deposited, to cause the required work to be done and to withdraw that amount required for payment of all costs therefor.
(C) Liability insurance. The subdivider may be required to furnish such insurance as is deemed necessary by the City Council which shall indemnify and save harmless the city from any and all liability arising by reason of any conditions which may arise or grow out of the construction or installation of improvements. The insurance shall be of such an amount as determined by the Planning Commission, or its duly authorized representative. A copy of the insurance policy shall remain at all times with the City Clerk/Treasurer.
(Ord. 1971-2, passed 4-6-71)